Solved

The Difference Between Temporary Factor- Price Differentials and Equilibrium Factor-

Question 35

Multiple Choice

The difference between temporary factor- price differentials and equilibrium factor- price differentials is that


A) temporary differentials are affected by supply and demand whereas equilibrium differentials are not.
B) the government can only eliminate equilibrium differentials.
C) equilibrium differentials lead to,and are eliminated by,factor mobility whereas temporary differentials do not.
D) only equilibrium differentials are interesting for policy purposes.
E) temporary differentials lead to,and are eliminated by,factor mobility whereas equilibrium differentials do not.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents